The cost-of-living crisis is in no way ‘news’ for us in the UK anymore. We have long passed entering our second year of sky-high inflation and rising household costs, with no real end in sight for the high prices we have endured.
The rate of inflation in February 2023 was reported to be 10.4%, indicating that prices would rise by more than a tenth in the space of a year from that date. But according to specific data sets targeting the price of household grocery items, the rate of inflation many have been experiencing from their shopping trolleys is as high as 16.7%.
Navigating these disproportionate rises and actively saving money, in an economic climate hostile to wage increases, can feel like a full-time job in its own right. But there are some major routes to beating inflation and saving – as we are about to discover.
Switch to an EV
Electric Vehicles, or EVs for short, are the future of private transport in the developed world. Climate change has rendered the use of fossil fuels unsustainable, and the forward march of EV technology threatens to leave the combustion engine in the dust.
EVs are also a golden opportunity to break free of the various costs that plague conventional gas guzzlers. With an EV you would still have to book an MOT online each year, and still be responsible for insuring it, but ancillary service and tax costs would dwindle – to say nothing of the fuel savings.
Giving careful consideration to where you keep your money will naturally help you grow it more effectively. For a long time, interest rates were negligible and largely irrelevant. However, the Bank of England’s measures to curb inflation have seen interest rates rise – making shopping around for new savings accounts a much more worthwhile task. Savings accounts are now much more potent for growing savings, with independent digital banks outperforming many high street names.
There are also deals and new customer offers you should watch out for, where banks essentially give money away in exchange for new customers or switching from an older account. First Direct is notorious for this, with its £175 gift to new customers.
Work From Home
Another new normal, in tandem with rising prices, is the growing popularity of working from home. With employees in many sectors proving the possibility of working remotely without impacting productivity, businesses are continuing to enshrine remote working options into their models and structures.
Working from home has many direct benefits, but the cost is crucial. Working from home eliminates commuting costs near-completely and reduces the temptation to buy lunch out of the house. These spending cuts can add up to a large amount over a surprisingly short amount of time, leaving you with more money in your pocket to save as you wish.